Inflexion books 3.7x through Sanne IPO

The UK-based firm is listing the fund administration services provider after just two and a half years

Sanne Group, a trust and fund administration services provider backed by UK-based Inflexion Private Equity, has listed on the London Stock Exchange with a share price of 200 pence and a market capitalisation of £232 million (€317 million; $343 million), according to a statement for the firm.

The partial exit after just two and a half years of ownership will yield a realised and unrealised return of 3.7x and an internal rate of return of 80 percent. Inflexion will retain an 11 percent shareholding in the company, worth £26 million (€35 million; $38 million) per the float price.

The IPO is expected to raise more than £140 million (€191 million; $207 million) following strong interest from UK institutional investors. Admission to trade is expected to take place on 1 April 2015.

Sanne’s clients include alternative asset managers, financial institutions, corporates and high net worth individuals. The company operates globally, with a presence in Jersey, Guernsey, London, Luxembourg, Dublin, Hong Kong, Shanghai, Singapore and Dubai.
Sanne chief executive officer Dean Godwin said the listing “offers an excellent opportunity for Sanne to build upon an already strong operational platform to drive strategic growth”, according to a statement from the company.

The company will continue to focus on business expansion through organic and inorganic growth, concentrating on deepening key client relationships, evolving its core asset-led offering and building operational scale in the company’s target markets.

Inflexion invested in Sanne in 2012. Since then Sanne has made two acquisitions from State Street, adding scale, international reach and profitability to the business. The company’s headcount has also grown by more than 80 percent, utilising Inflexion’s international teams in India and China to explore growth opportunities in those markets. Sanne also opened a Singapore office during this time.

Between 2012 and 2014 Sanne posted revenue growth of 38 percent CAGR, and EBITDA growth of 45 percent CAGR, according to Inflexion.

In February Inflexion sold its investment in global air conditioning pumps manufacturer Aspen Pumps to 3i Group for £105 million (€143 million; $162 million), netting a return of 14x, PEI reported previously.

Earlier this month the firm made the first investment from its £400 million (€556 million; $605 million) Inflexion Partnership Capital Fund I, a vehicle dedicated to UK mid-market minority investments which closed in September last year, acquiring a stake of just under 50 percent in media and exhibitions business CloserStill Media. The acquisition marked an exit for UK-based mid-market firm Phoenix Equity Partners, which made a return of more than 3.5x on the transaction.

Last September Inflexion also closed its flagship fund, Inflexion Buyout Fund IV, on its hard-cap of £650 million.

“The next buyout deal that we do will go into that fund,” Inflexion managing partner Simon Turner told PEI earlier this month.